High Court of KeralaDivision BenchContempt case closed; EPFO to reconsider entitl...

Cont.Case (C) No.124 of 2020

Case / Petition Number:Cont.Case (C) No.124 of 2020

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • The Hon'ble Mr. Justice Anil K. Narendran
  • The Hon'ble Mrs. Justice Sophy Thomas
Judgment Date
2023-09-30
Court Decision / Holding
The Contempt Case is closed. The court holds that, in view of the Supreme Court’s 04.11.2022 judgment in Sunil Kumar B. and connected matters, the petitioners’ entitlement for higher pension requires reconsideration by the EPFO in accordance with law. The EPFO is directed to undertake the requisite reconsideration and implement the directions consistent with the amended pension scheme, as interpreted by the Supreme Court, with a view to finalizing entitlement for the petitioners. The court clarifies that this closure is without prejudice to the right of EPFO to reassess entitlement in light of the 2022 judgment.
Final Disposition
Contempt case closed; EPFO to reconsider entitlement for higher pension in light of the Supreme Court’s 2022 judgment; matter left to EPFO to implement within the law.

Parties to the Case

Appellants / Petitioners

  • VIJAYAN M., S/O LATE P. KRISHNAN NAIR, MADATHIVEETIL HOUSE, NANDIKKARA P.O., THRISSUR DISTRICT
  • SREEDHARAN P., S/O KUNHIRAMAN M.V., MAVILA HOUSE, SREEKANDAPURAM, KOTTUR, KANNUR DISTRICT
  • VIJAYAKUMAR P., S/O PONNU, NJARAVILA VEEDU, VENGANOOR P.O., THIRUVANANTHAPURAM DISTRICT
  • SOBHANA M., D/O LATE NARAYANAN NAIR, MADATHIVEETIL HOUSE, NANDICARA P.O., THRISSUR DISTRICT
  • VENUGOPAL N., S/O LATE SRI V. NARAYANAN, PUTHIYAVEETIL THEKKETHIL, KARUVATTUMKUZHI, KAREELAKULANGARA P.O., ALAPPUZHA DISTRICT

Respondents

  • UMESH KUMAR

Legal Representation & Advocates

Counsels for Petitioners

  • • K. Sasikumar
  • • S. Aravind

Counsels for Respondents

  • • Nita N.S

Case Synopsis & Summary

Cont.Case (C) No.124 of 2020 arises from five petitioners (petitioners 8, 9, 10, 17 and 20) who were part of W.P.(C) No.3112 of 2017 in the Kerala High Court, challenging the non‑compliance with directions issued in Annexure II of the judgment dated 25 February 2019 and connected matters following Annexure I judgment in W.P.(C) No.13120 of 2015. The petitioners, employees of Aralam Farming Corporation (Kerala) Ltd., filed this contempt petition under Section 12 of the Contempt of Courts Act, 1971, alleging willful disobedience by Umesh Kumar, Assistant PF Commissioner, EPFO Kannur, of the directions. The Supreme Court's later decision in Sunil Kumar B. (2022) clarified the legality of Notification No. G.S.R.609(E) (2014) and mandated changes to the pension scheme, including the post‑amendment provisions and extension of certain options. The Kerala High Court noted that the petitioners’ entitlement to higher pension requires reconsideration by the EPFO in light of the 2022 Supreme Court judgment and closed the contempt case with liberty to re‑consideration in accordance with law. The case references Annexure II, Annexure I judgments, and related Orders, and invokes Article 142 of the Constitution for the directive to act within the law.

Provisions of Law Cited

Section 12 of the Contempt of Courts Act, 1971Employees' Provident Funds and Miscellaneous Provisions Act, 1952Notification No. G.S.R. 609(E) dated 22 August 2014Paragraph 11(3) (pre-amendment) of the Pension SchemeParagraph 11(4) of the Pension Scheme (post-amendment)Article 142 of the Constitution of India

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that there has been willful disobedience of Annexure II directions dated 25.02.2019 in W.P.(C) No.3112/2017 and connected matters. They rely on the 2014 G.S.R. 609(E) amendment and subsequent Supreme Court pronouncements (notably the 2022 Sunil Kumar B. decision) to assert that pension reforms and option extensions must be applied to their cases. They submit that the EPFO be directed to recalculate and disburse higher pension in line with the amended scheme and earlier directives, and that a concrete timeline be fixed for compliance. They invoke Article 142 to justify extended time for compliance and contend that the delay has caused financial detriment. They rely on RC Gupta’s line of authority to support interpretation that pre‑amendment and post‑amendment provisions should be harmonized in their favour and seek an expeditious remedy. They emphasize that the contempt petition seeks only enforcement of lawful directions and prompt disbursement of benefits due.

Contentions of Respondents

The respondent contends that the contemplated exercise must be undertaken by the EPFO in accordance with law and the processes required by the 2022 Supreme Court judgment. Counsel for the EPFO submits that there is no willful default; rather, the pension scheme re‑assessment should be carried out following due procedural steps and statutory provisions. The respondent argues for a careful, law‑governed implementation of the post‑amendment provisions, ensuring adjustments are consistent with the 1952 Act and G.S.R.609(E). They request dismissing or restricting the contempt allegations unless non‑compliance is proven beyond doubt and highlight the need for a structured timetable and monitoring mechanism for compliance under the guidance of the Supreme Court’s directives. The counsel asserts EPFO’s willingness to reconsider entitlement within the statutory framework and avoid arbitrary decisions.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Sunil Kumar B.2022 (7) KHC 12 : AIR 2022 SC 5634PositiveSupreme Court decision cited as validating the 2014 G.S.R.609(E) amendment and directing pension reform; Kerala HC relies on it to require reconsideration of entitlement in light of the 2022 judgment.
R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others[(2018) 14 SCC 809]PositiveUsed to support interpretation of para 11(3) (pre‑amendment) and the prospect of exercising option under para 11(4) of the pension scheme.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE ANIL K. NARENDRAN ``` ## **`&`** ``` THE HONOURABLE MRS.JUSTICE SOPHY THOMAS SATURDAY, THE 30[TH] DAY OF SEPTEMBER 2023/8TH ASWINA, 1945 CON.CASE(C)NO.124 OF 2020 ``` ``` ARISING OUT OF THE JUDGMENT DATED 25.02.2019 IN ``` ``` WP(C)NO.3112 OF 2017 OF HIGH COURT OF KERALA ``` ``` PETITIONERS/PETITIONERS 8, 9, 10, 17 & 20: ``` - **`1 VIJAYAN.M., AGED 62 YEARS, S/O.LATE P. KRISHNAN NAIR, MADATHIVEETIL HOUSE, NANDIKKARA P.O., THRISSUR DISTRICT, (JUNIOR AGRICULTURAL ASSISTANT, ARALAM FARMING CORPORATION (KERALA) LTD., ARALAM FARM P.O., PERAVOOR, KANNUR DISTRICT), EPF A/C.NO.KR/KNR/18280/ 114. (PETITIONER NO.8 IN WPC 3112/2017)`** - **`2 SREEDHARAN P., AGED 60 YEARS, S/O.KUNHIRAMAN M.V., MAVILA HOUSE, SREEKANDAPURAM, KOTTUR, KANNUR DISTRICT, (SECURITY GUARD, ARALAM FARMING CORPORATION (KERALA) LTD., ARALAM FARM P.O., PERAVOOR, KANNUR DISTRICT), EPF A/C.NO.KR/KNR/18280/514.(PETITIONER NO.9 IN WPC 3112/2017)`** - **`3 VIJAYAKUMAR P., AGED 59 YEARS, S/O. PONNU, NJARAVILA VEEDU, VENGANOOR P.O., THIRUVANANTHAPURAM DISTRICT, (SECURITY GUARD, ARALAM FARMING CORPORATION (KERALA) LTD., ARALAM FARM P.O., PERAVOOR, KANNUR DISTRICT), EPF A/C. NO.KR/KNR/18280/635. (PETITIONER NO.10 IN WPC 3112/2017)`** - **`4 SOBHANA M., AGED 60 YEARS, D/O.LATE NARAYANAN NAIR, MADATHIVEETIL HOUSE, NANDICARA P.O., THRISSUR DISTRICT, (SECURITY GUARD, ARALAM FARMING CORPORATION (KERALA) LTD., ARALAM FARM P.O., PERAVOOR, KANNUR DISTRICT), EPF A/C.NO.KR/KNR/18280/715. (PETITIONER NO.17 IN WPC 3112/2017)`** - **`5 VENUGOPAL N., AGED 60 YEARS, S/O.LATE SRI.V. NARAYANAN, PUTHIYAVEETIL THEKKETHIL, KARUVATTUMKUZHI, KAREELAKULANGARA P.O., ALAPPUZHA DISTRICT, (ASSISTANT STATISTICIAN, ARALAM FARMING CORPORATION (KERALA) LTD.,`** 2 Cont.Case (C)No.124 of 2020 ``` ARALAM FARM P.O., PERAVOOR, KANNUR DISTRICT), EPF A/C. NO.KR/KNR/18280/619. (PETITIONER NO.20 IN WPC 3112/2017) ``` ``` BY ADVS.K.SASIKUMAR SRI.S.ARAVIND ``` ## **`RESPONDENT/RESPONDENT NO.4:`** ``` UMESH KUMAR, (AGED AND FATHER'S NAME NOT KNOWN TO THE PETITIONERS), ASSISTANT PF COMMISSIONER, EMPLOYEES PROVIDENT FUND SUB REGIONAL OFFICE, KANNUR, PIN-670 671. ``` ``` R BY ADV NITA N.S ``` ``` THIS CONTEMPT OF COURT CASE (CIVIL) HAVING COME UP FOR ADMISSION ON 30.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 3 Cont.Case (C)No.124 of 2020 ## **JUDGMENT** Anil K. Narendran, J. The petitioners, who are petitioners 8, 9, 10, 17 and 20 in W.P.(C)No.3112 of 2017, have filed this Contempt Case, invoking the provisions under Section 12 of the Contempt of Courts Act, 1971 alleging willful disobedience of the directions contained in Annexure II judgment dated 25.02.2019 in that writ petition, which was one rendered following Annexure I judgment dated 12.10.2018 in W.P.(C)No.13120 of 2015 and connected matters. 2. The SLP filed by the Employees Provident Fund Organisation against the judgment dated 12.10.2018 in W.P.(C) No.13120 of 2015 and connected cases were dismissed by the Apex Court vide order dated 01.04.2019 in SLP (C) - Diary No.9610 of 2019. That order was recalled and the Apex Court rendered a detailed judgment dated 04.11.2022 in Civil Appeal Nos.8143 of 2022 and 8144 of 2022 and connected matters- **Employees Provident Fund Organisation v. Sunil Kumar B.** **[2022 (7) KHC 12 : AIR 2022 SC 5634]** . In that judgment, the Apex Court held that the provisions contained in Notification No.GSR 609(E) dated 22.08.2014 is legal and valid. The directions contained in paragraph 44 of the said judgment of the Apex Court dated 04.11.2022 read as follows: 4 Cont.Case (C)No.124 of 2020 ## “44. We accordingly hold and direct:- (i) The provisions contained in the notification No. G.S.R.609(E) dated 22nd August 2014 are legal and valid. So far as present members of the fund are concerned, we have read down certain provisions of the scheme as applicable in their cases and we shall give our findings and directions on these provisions in the subsequent subparagraphs. (ii) Amendment to the pension scheme brought about by the notification No. G.S.R. 609(E) dated 22[nd] August 2014 shall apply to the employees of the exempted establishments in the same manner as the employees of the regular establishments. Transfer of funds from the exempted establishments shall be in the manner as we have already directed. (iii) The employees who had exercised option under the proviso to paragraph 11(3) of the 1995 scheme and continued to be in service as on 1[st] September 2014, will be guided by the amended provisions of paragraph 11(4) of the pension scheme. (iv) The members of the scheme, who did not exercise option, as contemplated in the proviso to paragraph 11(3) of the pension scheme (as it was before the 2014 Amendment) would be entitled to exercise option under paragraph 11(4) of the post amendment scheme. Their right to exercise option before 1[st] September 2014 stands crystalised in the judgment of this Court in the case of **R.C. Gupta and others v. Regional Provident Fund Commissioner, Employees Provident Fund Organisation and others [(2018) 14 SCC 809]** . The scheme as it stood before 1[st] September 2014 did not 5 Cont.Case (C)No.124 of 2020 provide for any cut-off date and thus those members shall be entitled to exercise option in terms of paragraph 11(4) of the scheme, as it stands at present. Their exercise of option shall be in the nature of joint options covering preamended paragraph 11(3) as also the amended paragraph 11(4) of the pension scheme. There was uncertainty as regards validity of the post-amendment scheme, which was quashed by the aforesaid judgments of the three High Courts. Thus, all the employees who did not exercise option but were entitled to do so but could not due to the interpretation on cut-off date by the authorities, ought to be given a further chance to exercise their option. Time to exercise option under paragraph 11(4) of the scheme, under these circumstances, shall stand extended by a further period of four months. We are giving this direction in exercise of our jurisdiction under Article 142 of the Constitution of India. Rest of the requirements as per the amended provision shall be complied with. (v) The employees who had retired prior to 1[st] September 2014 without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. They would not be entitled to the benefit of this judgment. (vi) The employees who have retired before 1[st] September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014. (vii) The requirement of the members to contribute at the rate of 1.16 per cent of their salary to the extent such salary exceeds Rs.15,000/- per month as an additional 6 Cont.Case (C)No.124 of 2020 contribution under the amended scheme is held to be ultra vires the provisions of the 1952 Act. But for the reasons already explained above, we suspend operation of this part of our order for a period of six months. We do so to enable the authorities to make adjustments in the scheme so that the additional contribution can be generated from some other legitimate source within the scope of the Act, which could include enhancing the rate of contribution of the employers. We are not speculating on what steps the authorities will take as it would be for the legislature or the framers of the scheme to make necessary amendment. For the aforesaid period of six months or till such time any amendment is made, whichever is earlier, the employees’ contribution shall be as stop gap measure. The said sum shall be adjustable on the basis of alteration to the scheme that may be made. (viii) We do not find any flaw in altering the basis for computation of pensionable salary. (ix) We agree with the view taken by the Division Bench in the case of **R.C. Gupta** (supra) so far as interpretation of the proviso to paragraph 11(3) (pre-amendment) pension scheme is concerned. The fund authorities shall implement the directives contained in the said judgment within a period of eight weeks, subject to our directions contained earlier in this paragraph. (x) The Contempt Petition (C) Nos.1917 - 1918 of 2018 and Contempt Petition (C) Nos. 619-620 of 2019 in Civil Appeal Nos. 10013-10014 of 2016 are disposed of in the above terms.” 3. Heard the learned counsel for the petitioners and also the learned Standing Counsel for the Employees Provident Fund 7 Cont.Case (C)No.124 of 2020 Organisation, for the respondent. 4. In view of the judgment of the Apex Court dated 04.11.2022 in Civil Appeal Nos.8143-44 of 2022 and connected matters **[2022 (7) KHC 12 : AIR 2022 SC 5634]** , the entitlement of the petitioners for disbursement of higher pension requires reconsideration at the hands of the Employees Provident Fund Organisation. 5. The learned Standing Counsel for the respondent would submit that the aforesaid exercise shall be undertaken by the Employees Provident Fund Organisation in accordance with law. In the said circumstances, this Contempt Case is closed, without prejudice to the right of the Employees Provident Fund Organisation to reconsider the entitlement of the petitioners for disbursement of higher pension, in view of the judgment of the Apex Court dated 04.11.2022 in Civil Appeal Nos.8143-44 of 2022 and connected matters **[2022 (7) KHC 12 : AIR 2022 SC 5634]** . Sd/- ## **ANIL K. NARENDRAN, JUDGE** Sd/- **SOPHY THOMAS, JUDGE** AV/7/10 8 Cont.Case (C)No.124 of 2020 ## **`APPENDIX OF CON.CASE(C) 124/2020`** ``` PETITIONER ANNEXURES ``` ``` ANNEXURE I A TRUE COPY OF THE JUDGMENT OF HONOURABLE HIGH COURT OF KERALA IN WPC NO.13120/2015 DATED 12/10/2018. ``` ``` ANNEXURE II A CERTIFIED COPY OF THE JUDGMENT DATED 25/02/2019 IN WPC NO.3112/2017 AND CONNECTED CASES. ```